Disney (DIS) CEO Bob Iger’s confrontation with Nelson Peltz’s Trian Fund Management is in investors sights' as the company holds its annual shareholder meeting Wednesday; shares of Intel (INTC) are down in premarket trading after the legacy chipmaker disclosed a widening loss in its foundry business; Paramount Global (PARA) shares are rising on a report it is closing on on exclusive takeover talks with Skydance; Cal-Maine Foods shares jumped as strong egg sales boosted earnings; and American Depositary Receipts (ADRs) of Taiwan Semiconductor Manufacturing Co. (TSM) are slipping as evacuated workers return to work after Taiwan’s worst earthquake in 25 years. U.S. stock futures are declining. Here’s what investors need to know today.
1. Disney Proxy Battle, Streaming in Focus Ahead of Shareholder Meeting
Disney (DIS) will conduct its annual shareholder meeting on Wednesday, with market participants monitoring intently for updates on the proxy conflict between the company and activist investors, as well as potential details on its parks segment and its streaming strategy. At the meeting, shareholders will vote on board directors as the months-long proxy conflict between Disney Chief Executive Officer (CEO) Bob Iger and Trian Fund Management comes to a climax. Reuters reported that Walt Disney has enough shareholder ballots to defeat the board directors put forward by Trian. Meanwhile, Elon Musk cast his support behind Trian, saying in a post on X that Nelson Peltz, CEO of the hedge fund, “should definitely be on the Disney board!” Disney shares, which have gained about 35% so far this year, were little changed in premarket trading.
2. Intel Falls on Widening Loss, Sales Decline in Foundry Business
Shares of Intel (INTC) are down more than 4% in premarket trading after the legacy chipmaker disclosed a widening loss and declining sales in its semiconductor manufacturing business, also known by investors as its foundry business. The chipmaker, which named Lorenzo Flores as chief financial officer (CFO) of Intel Foundry, expects losses in the foundry business to climax this year before breaking even midway between now and the end of 2030. The company is manufacturing processors for external firms under CEO Patrick Gelsinger’s leadership and added Windows maker Microsoft (MSFT) as a future customer in February.
3. Paramount Gains as Firm Reportedly Closes in on Takeover by Skydance
Paramount Global (PARA) shares are up about 2% in premarket trading following a report from The New York Times that the company is discussing the possibility of entering into exclusive discussions with the media company Skydance for a potential transaction. David Ellison’s Skydance has been in discussions with Shari Redstone for more than a year to acquire a majority stake in National Amusements, the holding company that grants her control of Paramount Global. Apollo Global Management, an investment firm with more than $500 billion under management, has submitted a $11 billion offer to acquire the Paramount movie studio. Ellison met with Paramount’s board of directors late last month to negotiate the transaction, the report said.
4. Cal-Maine Shares Surge as Strong Egg Demand Boosts Earnings
Shares of Cal-Maine Foods (CALM) are surging nearly 7% in premarket trading after the egg producer posted quarterly results that beat Wall Street expectations. Strong demand for eggs helped counteract a significant decline in egg prices during the period and bolstered earnings at the Ridgeland, Miss.-based company. The firm posted fiscal third-quarter earnings of $3.01 per share, significantly surpassing analysts’ forecasts of $2.45 a share, while revenue, which fell to $703.1 million, was well above analysts’ forecasts of $692 million.
5. Taiwan Hit by Worst Earthquake in 25 Years; TSMC Shares Decline
Taiwan’s strongest earthquake in a quarter century leveled scores of buildings on the eastern side of the island, killing at least nine people and disrupting semiconductor production at some of the world’s leading chipmakers, according to Bloomberg. American Depositary Receipts (ADRs) of Taiwan Semiconductor Manufacturing Co.'s (TSM), the world’s largest contract semiconductor manufacturer, are about 1% lower in premarket trading. The company reportedly said all its workers were secure and those who were evacuated have started returning to some factory lines.